NEW DELHI: Axis Bank on Tuesday said it had suspended 19 officials allegedly involved in “illegal activity” after the Centre announced the scrapping of the Rs 500 and Rs 1,00 notes.
Following the arrest of two of its managers here by the Enforcement Directorate in connection with a money laundering probe, Axis Bank has hired the professional service company KPMG to do a forensic audit and strengthen the mechanism to prevent such activities.
The bank has suspended 19 officials, including six of the Kashmere Gate branch whose managers were the arrested duo, Axis Bank executive director Rajesh Dahiya said. On Monday the Enforcement Directorate arrested the Axis Bank managers and seized 3 kg gold bars in connection with a money laundering probe into a racket illegally converting old notes into new in connivance with bank authorities.
Since registering a criminal complaint under the Prevention of Money Laundering Act on November 30, the probe agency has found that huge amounts of money were transferred through RTGS transfers to some shell companies.These include a case where the director of such a firm was named as a “petty labourer.” The agency identified the two managers as Shobit Sinha and Vineet Gupta and said they were arrested under the provisions of the Act.